Tax Burden of Agricultural Enterprises in Ukraine
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Published:
Dec 2, 2021
Keywords:
taxation, tax burden, agricultural producers, simplified taxation system, value added tax
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Abstract
Agriculture is one of the leading sectors of the Ukrainian economy, and the state pays special attention to its development. One of directions of the state’s support for agriculture is implementation of tax preferences due to which agricultural enterprises have a lower tax burden. The optimal level of the tax burden is an important factor in ensuring the positive dynamics of business activity in agriculture, as well as socio-political stability. The objective of the article is to determine the impact of recent changes in the Ukrainian tax legislation on the tax burden of agricultural enterprises, as well as the possible impact of current draft laws. The article examines features of the tax legislation in Ukrainewith regard to agricultural producers and its changes in recent years - increasing a single tax rate, introduction of indexation of land regulatory, monetary valuation, abolition of the special regime of a value added tax. The advantages and disadvantages of using a simplified taxation system by agricultural enterprises are considered. the study’s outcome comprises recommendations for agricultural enterprises to choose a tax system with the lowest tax burden, as well as recommendations for improving the tax legislation of Ukraine using preferential VAT rates for agricultural enterprises and a tax on withdrawn capital.
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Kostornoi, S., Yatsukh, O., Tsap, V., Demchenko, I., Zakharova, N., Klymenko, M., Labenko, O., Baranovska, V., Daniel, Z., & Tomaszewska-Górecka, W. (2021). Tax Burden of Agricultural Enterprises in Ukraine. Agricultural Engineering , 25, 157-169. https://doi.org/10.2478/agriceng-2021-0013
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References
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Tryhuba, A., Hutsol, T., Tryhuba, I., Pokotylska, N., Kovalenko, N., Tabor, S., Kwasniewski, D. (2021). Risk Assessment of Investments in Projects of Production of Raw Materials for Bioethanol. Processes 2021, 9(1), 12.
Tsap, V. (2018). Control of the tax burden on taxpayers by regulatory authorities. Collection of scientific works of the Tavriya State Agrotechnological University (economic sciences), 2(37), 236-242.
Tulush, L. (2016). Tax reform in agriculture: risks and prospects. Collection of scientific works of Uman National University of Horticulture. 88(2), 20-33.
Uryszek, T. (2018). Fiscal Sustainability of Local Governments in the Visegrad Group Countries. Entrepreneurial Business and Economics Review, 6(3), 59-71.10.15678/EBER.2018.060304
Vasiljevic, Dusan (2016). Taxation of agricultural and forest land: Comparative perspective and practice in Serbia. Ekonomika poljoprivrede, 63(2), 713-726.10.5937/ekoPolj1602713V
Wach, K. (2006). Systemy podatkowe krajów Unii Europejskiej. Wolters Kluwers Polska, Kraków. ISBN: 83-7484-030-7.
Yatsukh, O. (2015). Ways to optimize the tax burden for business entities in the agricultural sector of Ukraine. Collection of scientific works of Tavriya State Agrotechnological University. (Economic sciences). 1(29), 187-191.
Zhuk, V. (2011). Status and development of special tax regimes for agrarian business. Finance of Ukraine, 7, 33-42.
Baranova, V., Dubovik, O. (2013). The impact of the tax burden on business development. Scientific Bulletin of the National University of the State Tax Service of Ukraine (Economics, Law), 1(60), 25-30.
Council Directive 2006/112 / EC of 28 November 2006 on the common system of value added tax https://eur-lex.europa.eu/eli/dir/2006/112/oj, (accessed on 2021/01/28).
Demyanenko, M. (1999). Reforming tax relations in the agricultural sector of agriculture. Economics of AIC, 6, 78-80.
Draft laws on the website of the Verkhovna Rada of Ukraine http://w1.c1.rada.gov.ua/pls/zweb2/webproc2 (in Ukrainian), (accessed on 2021/01/28).
Halushchak, I., Kokhan, I., Dmytrovska, V. (2019). Features of Tax Policy in Ukraine in the Context of European Integration Online Journal Modelling the New Europe, 31, 90-103.10.24193/OJMNE.2019.31.05
Hogan, L. (2012). Non-renewable resource taxation: policy reform in Australia. Australian Journal of Agricultural and Resource Economics, 56(2), 244-259. doi.org/10.1111/j.1467-8489.2012.00583.x10.1111/j.1467-8489.2012.00583.x
Kostornoi, S. (2014). Directions of reforming the taxation of agricultural enterprises. Collection of scientific works of the Tavriya State Agrotechnological University (economic sciences), 2. 110-113.
Kovalenko, N., Hutsol, T., Kovalenko, V., Glowacki, S., Kokovikhin, S., Dubik, V., Mudragel, O., Kuboń, M., Tomaszewska-Górecka, W. (2021). Hydrogen Production Analysis: Prospects for Ukraine. Agricultural Engineering,25(1), 99-114.10.2478/agriceng-2021-0008
Kovalenko, N., Kovalenko, V., Hutsol, T., Ievstafiieva, Y., Polishchuk, A. (2021a). Economic Efficiency and Internal Competitive Advantages of Grain Production in The Central Region of Ukraine. Agricultural Engineering, 25(1), 51-62.10.2478/agriceng-2021-0004
Krysovaty, A., Vasylevska, G. (2013). The latest paradigm of preferential taxation. Kyiv: Center for Educational Literature.
Laffer, A., Seymour, J. (1979). The Economics of the Tax Revolt. New York: Harcourt Brace Jovanovich
McGee, R.W. (2008) Taxation and public finance in transition and developing economies. New York: Springer Science & Business Media.10.1007/978-0-387-25712-9
Odintsov, O., Yevtukhova, T., Vasylkonova, E., Kunchenko-Kharchenko, V. (2020) Influence of tax burden on economic development of agricultural enterprises in Ukraine Journal of Eastern European and Central Asian Research, 7, 150-162.10.15549/jeecar.v7i1.328
Prokopchuk, E. (2014). Features of the transformation of the special regime of VAT collection in the field of production and processing of agricultural products. Prospects for Science and Education, 4(10), 167-173.
Rymanov, A. (2017). Differential land rent and agricultural taxation. Agricultural Economics (Zemědělská ekonomika), 63(9), 421-429.10.17221/127/2016-AGRICECON
Shevchuk, V., Kopych, R. (2018). Assessing Fiscal Sustainability in Ukraine: TVP and VAR/VEC Approaches. Entrepreneurial Business and Economics Review, 6(3), 73-87.10.15678/EBER.2018.060305
Siroky, J., Krajcova, J., Hakalova, J. (2016). The taxation of agricultural land with the use of multi-criteria analysis. Agricultural Economics–Czech, 62, 197-204.10.17221/183/2015-AGRICECON
Slemrod, J. (1990). Optimal taxation and optimal tax systems. Journal of economic Perspectives, 4(1), 157-178.10.1257/jep.4.1.157
State Statistics Service http://www.ukrstat.gov.ua (in Ukrainian), (accessed on 2021/01/28).
Tax Code of Ukraine https://zakon.rada.gov.ua/laws/show/2755-17 (in Ukrainian), (accessed on 2021/01/28).
Troilo, M., Zdziarski, M., Collins, J. M. (2017). Competitiveness, Technology Licensing, and Ease of Paying Taxes: A 30-Country Study. Entrepreneurial Business and Economics Review, 5(4), 11-34.10.15678/EBER.2017.050401
Trusova, N., Synchak, V., Borovik, L., Kostornoi, S., Chkan, I., Forkun, I. (2020). Fiscal policy in a decentralized space of the financial system of Ukraine. International Journal of Criminology and Sociology, 9, 2891-2904.
Tryhuba, A., Hutsol, T., Glowacki, S., Tryhuba, I., Tabor, S., Kwasniewski, D., Sorokin, D., Yermakov, S. (2021). Forecasting Quantitative Risk Indicators of Investors in Projects of Biohydrogen Production from Agricultural Raw Materials. Processes 2021, 9(2), 258.10.3390/pr9020258
Tryhuba, A., Hutsol, T., Tryhuba, I., Pokotylska, N., Kovalenko, N., Tabor, S., Kwasniewski, D. (2021). Risk Assessment of Investments in Projects of Production of Raw Materials for Bioethanol. Processes 2021, 9(1), 12.
Tsap, V. (2018). Control of the tax burden on taxpayers by regulatory authorities. Collection of scientific works of the Tavriya State Agrotechnological University (economic sciences), 2(37), 236-242.
Tulush, L. (2016). Tax reform in agriculture: risks and prospects. Collection of scientific works of Uman National University of Horticulture. 88(2), 20-33.
Uryszek, T. (2018). Fiscal Sustainability of Local Governments in the Visegrad Group Countries. Entrepreneurial Business and Economics Review, 6(3), 59-71.10.15678/EBER.2018.060304
Vasiljevic, Dusan (2016). Taxation of agricultural and forest land: Comparative perspective and practice in Serbia. Ekonomika poljoprivrede, 63(2), 713-726.10.5937/ekoPolj1602713V
Wach, K. (2006). Systemy podatkowe krajów Unii Europejskiej. Wolters Kluwers Polska, Kraków. ISBN: 83-7484-030-7.
Yatsukh, O. (2015). Ways to optimize the tax burden for business entities in the agricultural sector of Ukraine. Collection of scientific works of Tavriya State Agrotechnological University. (Economic sciences). 1(29), 187-191.
Zhuk, V. (2011). Status and development of special tax regimes for agrarian business. Finance of Ukraine, 7, 33-42.